Reserve Bank of India.
The Reserve Bank of India was incorporated in 1935 and it was nationalized in the year 1949. The Reserve Bank of India is regarded as the central bank of India. Since it is the apex bank, it controls the monetary policy of the country. The functions of the Reserve Bank of India may be classified into two broad categories called primary functions and secondary functions.
The primary functions of the Reserve Bank of India are as follows:
- It enjoys the monopoly of note-issue in the country.
- It acts as on apex institution in the banking system of the country and also control the credit.
- It acts as a banker to the government of India and the state governments.
- It controls the foreign exchange rates and also control the bank rate of the country.
- It acts as a banker’s bank.
The following are some of secondary functions of the Reserve Bank of India:
- It helps in the provisions of agricultural credit.
- It acts as a clearing house in the banking system.
- It provides training facilities in banking because the RBI has set up the first Banker’s Training college at Mumbai.
- It extends financial assistance to industrial units and co-operative societies.